Curse of the Crimson Throne
Pilts Palace is anything but a palace, rather a collection of tenements and abandoned stores that escaped destruction, linking these buildings together with bridges and by demolishing walls to create the illusion of a run-down kingly fortress, under the control of Pilts Swastel and his thugs who were in conflict for control of Old Korvosa against House Arkona.
Escape from Old Korvosa
Sometime after the events of the Blood Veil outbreak, Old Korvosa was quarantined and isolated from the rest of the city. The eastern area of the island came under the control of the self-proclaimed Emperor of Old Korvosa and this makeshift palace became the center of authority for the section of the city.